[Kenya] Sidian Bank turns to IBM to fuel its digital transformation

Kenya’s lender Sidian Bank turned to IBM Cloud and Cognitive solutions to fuel its digital transformation. This helps the bank provide its growing customer base of small and medium-sized businesses with faster access to existing services like debit and credit card processing, bank account opening, teller services and wealth management.

Sidian Bank, founded in 1984, was launched as a micro-finance bank before upgrading and becoming a commercial bank. The bank needed a core banking system that would provide a competitive edge as it enhanced its services to better target the entrepreneur market segment. It was also looking to reduce unplanned system outages and to improve its core banking system performance.

Prior to engaging IBM, about 40 percent of a typical business day’s working hours at the bank was spent on problem isolation. Today, however, through infrastructure as a service and cognitive management, the system can learn from past incidents and resolve 56 percent of any difficulties with minimum human intervention.

This has enabled the bank realize 34 percent savings in capital expenses and a 60 percent improvement in transactional times across all ATMs and teller counters.

Furthermore, the bank faced significant challenges with hardware capacity for memory, processing and storage which had a direct impact on applications availability. Previously the core banking services were running on legacy hardware. All applications were migrated to IBM infrastructure through a hybrid cloud model which is live and fully operational.

Also, with the infrastructure managed services on IBM systems the availability, speed of access and expansion for applications has improved to 99 percent from an average of 84 percent on a given week.

“This is the first collaboration of its kind in this market. It not only cements our partnership with the IBM, but also creates new and unique partnerships that support our institution’s growth strategy and enhances the efficiency of our entire banking infrastructure.” said Titus Karanja, CEO, Sidian Bank.

With the IBM cognitive capabilities, the bank continues to drive fast response times to customer needs which are key to supporting its mostly small and medium-sized tier entrepreneurs. It additionally enables the bank to improve IT staff productivity by 30 percent, freeing its technology team to focus on their core business.

"As the East Africa market expands and opens up to intense competition, we’re seeing more clients tap into IBM’s Cloud and Cognitive technologies to ensure a flexible and reliable IT platform and help them make smarter, faster decisions to address real-time business needs,” said Nik Nesbitt, General Manager for East Africa, IBM.

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